01-27-2005, 03:27 AM
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Hi,
Projecting the financial position of a company is termed as financial modelling...Statistical methods and ratio analysis are normally used for financial forecasting...trend analysis can also be used for projecting the figures...trends are usually projected for five to ten years...because the forecasts are estimates only and making estimates for a period which is far away might be useless...excel spreadsheets can also be use for financial modelling...
In modelling a relationship between two or more variables is formed and then by inserting different values of one variable the value of other variable can be found...(this method is termed as trend analysis in statistics)...
The variables in accounting can be receivables, payables, sales, purchases, investments, shares and stock, debentures etc...
You can form a relationship in these variables...that relationship will be the model for projecting the future figures and with the help of the resulted projected figures u can estimate the financial position of the company in future years...
Ace
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If I could... Then I would... Turn back time!!
Hi,
Projecting the financial position of a company is termed as financial modelling...Statistical methods and ratio analysis are normally used for financial forecasting...trend analysis can also be used for projecting the figures...trends are usually projected for five to ten years...because the forecasts are estimates only and making estimates for a period which is far away might be useless...excel spreadsheets can also be use for financial modelling...
In modelling a relationship between two or more variables is formed and then by inserting different values of one variable the value of other variable can be found...(this method is termed as trend analysis in statistics)...
The variables in accounting can be receivables, payables, sales, purchases, investments, shares and stock, debentures etc...
You can form a relationship in these variables...that relationship will be the model for projecting the future figures and with the help of the resulted projected figures u can estimate the financial position of the company in future years...
Ace
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If I could... Then I would... Turn back time!!
